Bank Reconciliation On May 31, the Cash in Bank account of Wallace Company, a sole proprietership, had a balance of $24,490.00 On that date, the bank statement indicated a balance of $31,734.00. A comparison of returned checks and bank advices revealed the following: 1. Deposits in transit May 31 totaled $10,836.20 2. Outstanding checks May 31 totaled $12,353.00 3. The bank added to the account $111.20 of interest income earned by Wallace during May. 4. The bank collected a $9,600 note receivable for Wallace and charged a $80 collection fee. Both items appear on the bank statement. 5. Bank service charges in addition to the collection fee, not yet recorded were $80.00. 6. Included with the returned checks is a memo indicating that L. Ryder's check for $2,744.00 had been returned NSF. Ryder, a customer, had sent the check to pay an account of $2,800.00 less a discount of 296 7. Wallace Company incorrectly recorded the payment of an account payable as $2,760.00 the check was for $3,840.00. Required a. Prepare a bank reconciliation for Wallace Company at May 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation